China has filed a complaint with the World Trade Organization against the United States’ electric vehicle (EV) tax credit program, alleging discriminatory practices.
Heart Of Dispute: The dispute centers on the Inflation Reduction Act‘s EV incentives, which effectively bar Chinese automakers from selling EVs directly in the U.S.
Implemented in August 2022, the IRA offers a $7,500 tax credit to U.S. consumers who purchase qualifying EVs. However, it requires EVs to be assembled in North America and use batteries with domestically sourced components, putting foreign manufacturers at a disadvantage.
China Seeks Level Playing Field: On Tuesday, China’s Ministry of Commerce invoked the WTO dispute settlement mechanism to protect its new energy vehicle industry and promote a fair global NEV market, CnEVPost reported.
The Ministry argues that the IRA’s provisions distort competition, disrupt the global NEV supply chain, and violate WTO rules. China urges the U.S. to comply with WTO regulations, eliminate discriminatory policies, and ensure stability in the global NEV supply chain.
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